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Shipping Fundamentals

August 25, 2025 by
Shipping Fundamentals
ADNAN AL-JAOUNI

 

A freight forwarder is your indispensable logistics partner in the world of international trade. At "Elaf Cargo," we specialize in organizing and arranging the shipment of goods on your behalf, ensuring their efficient and safe door-to-door delivery. Our integrated services include sea and air freight, customs clearance, inland transportation from origin to final destination, and the preparation of all required documents. We relieve you of the burden of complex coordination and provide a comprehensive solution to meet all your supply chain needs, allowing you to focus on growing your business.

  2. Our Core Services at Elaf Cargo: Your Partner Every Step of the Way

At "Elaf Cargo," we offer a comprehensive suite of services designed to cover all aspects of the shipping process. Whether you need full container load (FCL) or less than container load (LCL) sea freight, or prefer the speed of air freight, we provide the optimal choice for you. Our services extend beyond mere transportation to include secure warehousing, consolidation/deconsolidation services for increased efficiency and cost reduction. We also ensure comprehensive cargo insurance to protect your goods against any risks and guarantee full compliance with customs procedures to avoid any delays.

3. Understanding the Shipping Process: Your Goods' Journey with Elaf Cargo

The shipping process consists of four main stages that we master at "Elaf Cargo" to ensure a smooth experience. The journey begins with Stage One: Handling at the Origin Country, where we receive the shipment from the supplier. This is followed by Stage Two: Export Customs Clearance, where we handle all official procedures for the shipment's departure. Next comes Stage Three: International Transportation, whether by air or sea, reaching the destination port. Finally, Stage Four: Import Customs Clearance and Handling at the Destination Country, where we finalize procedures and deliver the shipment to you. We manage every step precisely to ensure your shipment arrives safely and on time.  


4. What are Incoterms? And How Do They Affect Your Shipment?


Incoterms (International Commercial Terms) are global rules issued by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of both sellers and buyers in shipping operations. These terms precisely clarify who is responsible for shipping costs, insurance, and the point of risk transfer from one party to another. For example, the term (EXW) means the buyer bears all responsibilities from the seller's factory door, while in the term (DDP), the seller is responsible for everything until the goods are delivered to the buyer's door. Understanding these terms is essential to avoid misunderstandings and ensure a clear and transparent commercial process.


5. Most Common Incoterms Used in Shipping: EXW, FOB, CIF


To facilitate your international trade, it's important to know the most common shipping terms.


  • EXW (Ex Works): In this term, the seller's responsibility is limited to making the goods available at their premises (e.g., factory). From that point, the buyer bears all costs and risks, including transportation and customs clearance.
  • FOB (Free on Board): Here, the seller is responsible for delivering the goods and loading them onto the vessel at the port of shipment. Once loaded, responsibility and costs transfer to the buyer.
  • CIF (Cost, Insurance & Freight): The seller covers the costs of shipping and insurance for the goods until they reach the port of destination. However, the risk transfers to the buyer once the goods are loaded onto the vessel.